Moscow, 16 December — RUSAL, one of the world's leading aluminium producers, announced today that it is the winning bidder to explore and develop three bauxite deposits in the Severnaya Onega Group in Arkhangelsk region of Russia.

The three deposits — Plesetsk, Denislavsk and Ikhtinsk — consist of reserves estimated respectively at 300 mln., 17 mln. and over 500 mln. metric tons of bauxite. This includes both proved and indicated reserves. The licenses acquired by RUSAL permit it to develop all three deposits, while the Preletsk and Denislavsk deposits will also be further explored by RUSAL.

The bauxite will be supplied to RUSAL's existing alumina refineries. RUSAL is also considering possible construction of a new refinery in immediate proximity to the bauxite deposits. RUSAL's Engineering and Technological Center along with VAMI (All-Russia Aluminium and Magnesium Institute) have started developing special technology to refine Severnaya Onega's bauxite ores into alumina, as the existing technologies cannot be used for this type of bauxite.

The acquisition is a significant step in RUSAL's drive to strengthen its raw material base. RUSAL has set itself a target to raise its alumina production to 8 mln. metric tons by 2013 to secure bauxite supplies for its operations for 25 years.

About RUSAL

RUSAL, a world leader in aluminium production was formed in March 2000 from the merger of a number of the largest smelters and other aluminium producers located in the CIS. The company accounts for 75% of Russia’s primary aluminium output and 10% of the global primary aluminium output. RUSAL is a fully vertically integrated company with a complete production cycle from bauxite mining and the production of raw materials, to the production of primary metal, semi-products and aluminium-based end products. RUSAL is headquartered in Moscow.

For International Press

Zhenia Harrison
zharrison@rusal.ru

For Russian Press

Vera Kurochkina
Elena Shanina
Press-center@rusal.ru